Public comment sought on UGI mishandling of gas leak

By David Falchek (Staff Writer)Published: August 30, 2013

The public will have the chance to weigh in on an unprecedented proposed $1 million penalty the state Public Utility Commission wants to levy on UGI Penn Natural Gas over a mishandling of a gas leak that had the potential to cause a catastrophic explosion in Wilkes-Barre Twp. in April and May of 2012.

If levied, the fine will be the largest in PUC history, exceeding a $990,000 fine levied against HSS Vending for payphone overcharges in 1998. UGI may not use money from customers to pay the fine.

In addition to the fine, UGI is being asked to maintain a computer tracking of leak surveys and turn over to regulators detailed information about its pipeline network. UGI would also have to hire third parties to monitor its leak repairs and conduct a management audit.

The commissioners Thursday voted to seek public comment on the settlement, but none made comments of their own, said commission spokeswoman Jennifer Kocher.

UGI is already on thin ice with the commission. The Reading-based utility drew the ire of the PUC in January for safety shortfalls that resulted in death after a 2011 explosion in Allentown. PUC Chairman Robert F. Powelson railed against UGI, calling its compliance and safety record "patently unacceptable" and "downright alarming," and alluded to the commission's ultimate power: revoking UGI's permission to operate as a utility.

Any member of the public may review or comment on the proposed settlement by visiting www.puc.pa.gov or by mail to PUC, P.O. Box 3265, Harrisburg, PA 17105, and referencing docket M-2013-2338981. The comment period will be 20 days.

The commission's independent Bureau of Investigation and Enforcement looked into the matter of the Route 309 leak after a whistle-blower who claimed to be a UGI employee contacted federal authorities alluding to a potential "cover-up." Investigators allege that UGI-PNG was not compliant with state and federal regulations, knowingly conducting inadequate repairs, and not properly monitoring the leak. Under the settlement, UGI does not admit any wrongdoing.

UGI said in a statement it already began to put into place a number of the provisions outlined in the settlement.

"UGI-PNG is committed to its ongoing efforts to further enhance the safety and reliability of the company's facilities and practices," the statement read.

The company was already under orders from the commission to replace all of its unprotected steel pipe, like the one that runs along Route 309, within 30 years.

Contact the writer: dfalchek@timesshamrock.com

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